Consider the following statements:
- In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India.
- In India, Foreign Institutional Investors can hold the Government Securities (G-Secs).
- In India, Stock Exchanges can offer separate platforms for debts.
Which of the following statements is/are correct?
(a) 1 and 2 only
(b) 3 only
(c) 1, 2 and 3 only
(d) 2 and 3 only
Correct Answer: (d) 2 and 3 only
Explanation:
- Statement 1 is incorrect because Non-Banking Financial Companies (NBFCs) in India generally do not have access to the Liquidity Adjustment Facility (LAF) window of the Reserve Bank of India.
- Statement 2 is correct. Foreign Institutional Investors (FIIs) can hold Government Securities (G-Secs) in India.
- Statement 3 is correct. Stock Exchanges in India can offer separate platforms for debt instruments.
Possible Sources: Financial regulations and RBI guidelines.
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